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SBD Global/October 31, 2013/Marketing and Sponsorship

FIFA To Offer Regional Sponsorship Opportunities For 2018, 2022 World Cups

For the first time ever, FIFA will offer companies the opportunity to purchase regional sponsorship packages for the 2018 and 2022 FIFA World Cups. FIFA’s new commercial structure will be in place as of '15 for the 2018 and 2022 FIFA World Cups. The top two tiers remain mostly unchanged, with a total of 14 companies occupying the FIFA Partner and FIFA World Cup Sponsor positions. However, the third tier has been transformed from National Supporters to Regional Supporters. This tier can amount to a total of 20 brands from the five predefined regions of North America, South America, Europe, the Middle East & Africa and Asia (FIFA). BLOOMBERG's Ben Priechenfried reported FIFA Marketing Dir Thierry Weil said that the overhaul "will lift income from third-tier sponsors by as much as 30 percent." The World Cup "accounts for the majority" of the Zurich-based ruling body’s annual revenue of $1.2B, "about a quarter of which comes from commercial affiliates." FIFA’s new model is similar to that of ManU. The Premier League champion’s visibility "has allowed it to assemble a roster of more than 30 global corporate partners ranging from Chicago-based insurer Aon to Malaysian brand Mister Potato." Since '08, the club "has also signed agreements with regional partners, which are given exclusive rights to promote their companies alongside United within specific geographic areas, though they have little or no visibility in Manchester or on the team’s website." London-based sponsorship agency Synergy CEO Tim Crow said, "It’s a smart move by FIFA. Manchester United has shown that there’s plenty of demand for this model from big regional players and I’d expect FIFA to be similarly successful." Crow added that the shakeup gives the World Cup organizer a commercial advantage over the IOC. Crow: "It strongly differentiates the FIFA offer from its biggest competitor, the IOC, which offers either global or local with nothing in between" (BLOOMBERG, 10/29).
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